Prime Minister-elect Tony Abbott has declared that "the time for governing has arrived" after an election that swept Labor from office and brought to an end the Rudd-Gillard era.

Nine weeks after he wrested control of the party and the country from Julia Gillard, Kevin Rudd conceded defeat and with a "heavy heart" announced he would step down from the leadership.

With a national swing towards the Coalition of around 3.5 per cent, Mr Abbott has led the Coalition to a strong victory, winning a swathe of seats in Tasmania, Victoria and New South Wales.

"I am both proud and humbled as I shoulder the duties of government. The time for campaigning has passed, the time for governing has arrived. I pledge myself to the service of our country," he told a triumphant crowd of Liberal Party faithful in Sydney.

"I now look forward to forming a government that is competent, that is trustworthy, and which purposefully and steadfastly and methodically sets about delivering on our commitments to you, the Australian people.

"In three years' time, the carbon tax will be gone, the boats will be stopped, the budget will be on track for a believable surplus and the roads of the 21st century will finally be well underway.

"And from today, I declare that Australia is under new management and that Australia is once more open for business."

Key voting data

With 70 per cent of the vote counted, the ABC predicted the Coalition to win 91 seats and Labor 55

Labor's primary vote falls 4.6 per cent to 34.0 per cent

Two-party preferred vote 53.5 to 46.5, a swing of 3.6 per cent to the Coalition

Labor's losses centre around NSW, Victoria and Tasmania

He noted that "hundreds of thousands" of people had voted for the Coalition for the first time in this election and told them his government "will not let you down".

"A good government is one that governs for all Australians - including those who haven't voted for it," he said.

"A good government is one with a duty to help everyone to maximise his or her potential, Indigenous people, people with disabilities and our forgotten families, as well as those who Menzies described as lifters, not leaners," he said.

The Coalition has picked up the Victorian seats of Corangamite, La Trobe and Deakin, and looks set to claim the Tasmanian electorates of Bass, Braddon and Lyons.

And Mr Abbott appears set to welcome to the government benches new MPs for the previously Labor-held seats of Hindmarsh in SA and Lingiari in NT.

In Queensland, the Coalition has failed to win any Labor seats, however former Howard government minister Mal Brough is set to make a comeback after defeating controversial former speaker Peter Slipper.

But while the Coalition will have a large majority in the Lower House, it looks like minor parties - including the Palmer United Party (PUP) and the Australian Motoring Enthusiasts Party - will hold the balance of power in the Senate.

In Queensland, former rugby league star and PUP candidate Glenn Lazarus looks on course to take up a position on the crossbench with 60 per cent of the votes counted there, while his party colleague in Tasmania, Jacqui Lambie is on course to join him, with 75 per cent of the vote counted.

In Victoria, WikiLeaks Party founder Julian Assange has failed in his bid for a Senate seat. Micro party, the Australian Motoring Enthusiasts Party's Ricky Muir, looks likely to claim the sixth Upper House spot with 56 per cent of the vote counted.

Mr Abbott believes cutting red and green tape, having a firm fiscal strategy and supporting private enterprise will help reverse what he calls a "budget emergency".

Implementing his border protection policy will directly affect relations with some of Australia's most crucial neighbours, particularly Indonesia.

Mr Abbott's plan involves putting a senior military officer in charge of securing Australia's borders, continued offshore processing, turning boats back when safe to do so and buying boats off people smugglers in Indonesia.

The incoming prime minister characterised the election as a referendum on the carbon tax and has promised to begin work on legislation to repeal it on the first day of government.

However, until mid-2014 the Senate will remain under the control of Labor and the Greens, which have both indicated they would block a move to scrap the carbon tax.

Mr Abbott has left open the option of a double dissolution election if his plan faces opposition in the Senate.